More recently, businesses have broadened their attention to include other stakeholders. Gibson (2000) identified over 200 articles on stakeholders in philosophy and business journals during the period 1996–1998. We combine stakeholder theory with utilitarianism to offer managers another way of thinking about the ethics of inversion. Utilitarian ethics, as conceptualized by Mill, is a consequentialist approach: the effects of an act allow us to decide whether it is moral. For utilitarianism, an action is ethical if its consequences result in the greatest happiness for the largest number of those affected by the action. This means that in order to decide what strategy is ethical, a cost/benefit analysis must be done for all those affected. The morally correct alternative will be that which gives the best result overall (Ferrell et al., 2002). Mehafdi (2000), disregarding the fact that Mill’s theory requires consideration of both pleasures and pains (happiness and unhappiness), focuses exclusively on the question of harm, where the dimensions of harm include the physical, economic, and psychological, in his discussion of international transfer pricing. Here, we will look at the last two of those factors, economic and psychological, in developing a framework for the evaluation of inversions. We also return to
More recently, businesses have broadened their attention to include other stakeholders. Gibson (2000) identified over 200 articles on stakeholders in philosophy and business journals during the period 1996–1998. We combine stakeholder theory with utilitarianism to offer managers another way of thinking about the ethics of inversion. Utilitarian ethics, as conceptualized by Mill, is a consequentialist approach: the effects of an act allow us to decide whether it is moral. For utilitarianism, an action is ethical if its consequences result in the greatest happiness for the largest number of those affected by the action. This means that in order to decide what strategy is ethical, a cost/benefit analysis must be done for all those affected. The morally correct alternative will be that which gives the best result overall (Ferrell et al., 2002). Mehafdi (2000), disregarding the fact that Mill’s theory requires consideration of both pleasures and pains (happiness and unhappiness), focuses exclusively on the question of harm, where the dimensions of harm include the physical, economic, and psychological, in his discussion of international transfer pricing. Here, we will look at the last two of those factors, economic and psychological, in developing a framework for the evaluation of inversions. We also return to